Working
With A Real Estate Broker/Agent
Before
you begin working with any real estate agent, you should know who the agent
represents in the transaction.
There
are several types of relationships that are possible and you should understand
these at the time a broker or agent provides specific assistance to you in a
real estate transaction.
The
purpose of the Agency Disclosure is to
document an acknowledgement that the consumer has been informed of various
agency relationships which are available in a real estate transaction.
For
the purpose of this disclosure, the term seller and/or buyer will also include
those other acts specified in Section 73-35-3(1), Mississippi Code.,”...list,
sell, purchase, exchange, rent, lease, manage, or auction any real estate, or
the improvements thereon including options;.”
SELLER’S
AGENT
A
seller can enter into a “listing agreement” with a real estate firm
authorizing the firm and its agent(s) to represent the seller in finding a buyer
for his property.
A
licensee who is engaged by and acts as the agent of the Seller only is known as
a Seller’s Agent. A Seller’s Agent has the following duties and obligations:
*
The fiduciary duties of loyalty, confidentiality, obedience, disclosure, full
accounting and the duty to use skill, care and diligence.
To
the Buyer and Seller:
*
A duty of honesty and fair dealing.
*
A duty to disclose all facts known to the Seller’s Agent materially affecting
the value of the property which are not known to, or readilyobservable by, the
parties in a transaction.
BUYER’S
AGENT
A buyer may contract
with an agent or firm to represent him. A licensee who is engaged by and acts as
the agent of the Buyer only is known as the Buyer’s
Agent.
If a Buyer wants an agent to represent him in purchasing a property, the buyer
can enter into a Buyer’s Agency Agreement with the agent.
A
Buyer’s Agent has the following duties and obligations:
To
the Buyer:
*
The fiduciary duties of loyalty, confidentiality, obedience, disclosure, full
accounting and the duty to use skill, care and diligence.
To
the Seller and Buyer:
*
A duty of honesty and fair dealing.
DISCLOSED
DUAL AGENT
A
real estate agent or firm may represent more than one party in the same
transaction. A Disclosed Dual Agent is a licensee who, with the informed written
consent of the Seller and Buyer is engaged as an agent for both Seller and
Buyer.
As
a disclosed dual agent, the licensee shall not represent the interests of one
party to the exclusion or detriment of the interests of the other party. A
disclosed dual agent has all the fiduciary duties to the Seller and Buyer that a
Seller’s or Buyer’s Agent has except the duties of full disclosure and
undivided loyalty.
A
Disclosed Dual Agent may not disclose:
(a)
To the Buyer that the Seller will accept less than the asking or listed price,
unless otherwise instructed in writing by the Seller.
(b)
To the Seller that the Buyer will pay a price greater than the price submitted
in a written offer to the Seller, unless otherwise instructed in writing by the
Buyer.
(c)
The motivation of any party for selling, buying, or leasing a property, unless
otherwise instructed in writing by the respective party, or
(d)
That a Seller or Buyer will agree to financing terms other than those offered,
unless otherwise instructed in writing by the respective party.
CUSTOMER
“Customer”
shall mean that person not represented in a real estate transaction. It may be
the buyer, seller, landlord or tenant.
A
Buyer may decide to work with a firm that is acting as agent for the Seller (a
Seller”s Agent or Subagent). If a Buyer does not enter into a Buyer Agency
Agreement
with the firm that shows him properties, that firm and its agents may show the
Buyer properties as an agent or subagent working on the Seller’s
behalf.
Such a firm represents the Seller, (not the Buyer) and must disclose that fact
to the Buyer.
When
it comes to the price and terms of an offer, the Seller’s Agent will ask you
to decide how much to offer for any property and upon what terms and
conditions.
They can explain your options to you, but the final decision is yours, as they
cannot give you legal or financial advice. They will attempt to show
you
property in the price range and category you desire so that you will have
information on which to base your decision.
The
Seller’s Agent will present to the Seller any written offer that you ask them
to present. You should keep to yourself any information that you do not
want
the Seller to know (i.e. the price you are willing to pay, other terms your are
willing to accept, and your motivation for buying). The Seller’s agent is
required
to
tell all such information to the Seller. You should not furnish the Seller’s
agent anything you do not want the Seller to know. If you desire, you may obtain
the
representation of an attorney or another real estate agent, or both.
Copyright 2008 - Pinnacle Real Estate Services, LLC a Mississippi Corporation